Binance Draws Scrutiny From UK Parliament Over FTX Drama
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Nov. 15, 2022

Cryptocurrency exchange Binance will testify before the UK Parliament's Treasury Committee after it had publicly announced plans to sell its share in FTX's native tokens — FTT, Bloomberg has learned.

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Members of the committee reportedly want to know if Binance was aware that its decision to reveal the deal on Twitter would trigger FTX's collapse. The lawmakers also want to know why Binance decided not to proceed with its initial intent to acquire FTX.

Daniel Trinder, Vice President of Government Affairs at Binance, said that as part of the hearing, the company might redact "certain information" about its due diligence of FTX, citing several ongoing investigations against FTX in the US. However, the committee’s chair, Harriett Baldwin, already criticized such a move, saying that Binance would have to explain why it is withholding any evidence, the report says.

Binance's CZ Teases Big Trouble for Crypto Market as FTX Goes Bankrupt

In early November, Binance publicly announced plans to liquidate FTT from its reserves due to "recent revelations that have came to light." Although Binance's CEO, Changpeng Zhao, declined to explain what was the trigger behind the move, he had pointed out that the exchange "won't support people who lobby against other industry players behind their backs," referring to FTX.

Later, CZ publicly announced that Binance signed a letter of intent to acquire FTX, but soon walked away from the deal, citing "news reports regarding mishandled customer funds and alleged US agency investigations."

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